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2 Nov 2015
EZ CPI's better but not fundamentals no where close - ANZ
FXStreet (Guatemala) - Analysts at ANZ noted that Euro area CPI was 0.0% y/y (mkt: 0.0% y/y) in October, a modest improvement from the -0.1% y/y decline recorded in September.
Key Quotes:
"The energy component remained weak at -8.7% y/y, but core inflation picked
up modestly to 1.0% y/y from 0.9%% y/y. Moving forward, base effects will begin to put upwards pressure on headline inflation.
However, for inflation to move back towards the ECB’s target on a sustainable basis, it requires an intensification of domestic cost pressures via a reduction of excess capacity in the economy. Progress on this front has been slow."
Key Quotes:
"The energy component remained weak at -8.7% y/y, but core inflation picked
up modestly to 1.0% y/y from 0.9%% y/y. Moving forward, base effects will begin to put upwards pressure on headline inflation.
However, for inflation to move back towards the ECB’s target on a sustainable basis, it requires an intensification of domestic cost pressures via a reduction of excess capacity in the economy. Progress on this front has been slow."